PROCESS OF HUMAN RESOURCES MANAGEMENT PRACTICES ON EMPLOYEE ENGAGEMENT EVIDENCE FROM BANKING INDUSTRY

 

The competitive environment on the banking sector was widely altered over the past several decades due to rapid changes the banking sector experiences, such as technology development, deregulation, and globalizations (Chen, 2012). Technological advancement helped the come in to new products and services to the industry, changed the speed and way of catering financial services, and controlled cost (Beccalli, 2007). while Globalization created an environment where lot of investors entered into the market (Nellis, McCaffery, & Hutchinson, 2000).

 

The Banking sector of the world Contributes a higher percentage to the GDP under service sector. Banks are cannot exists without their employees (Budhwar, and Debrah, 2013). They always work to improve the efficiency of their employees( Budhwar, and Debrah, 2013).

Employee engagement is a key factor for improving a banks competitive benefits and financial strength (Albrecht, 2018). (Bailey, Madden, Alfes, and Fletcher,2017) found a positive  relation between employee engagement and employees’ morale, empowerment, job performance, and overall organizational success. (Anand,2017) mentioned that employee engagement creating a better customer experience, which is essential for improving financial strength.

The bank I work one of the leading bank of Sri Lanka. This bank engaging in many financial and non-financial activities to motivate the banking employees. Bank is using so many motivation tools to improve employment engagement.

  • 1.      Offering good bonus
  • 2.      Transportation facilities
  • 3.      Staff loans with low interest rates
  • 4.      Appreciating emails
  • 5.      Fair pay system
  • 6.      Paid Vacation
  • 7.      Providing Medical Insurance

                                                                 Figure 1

Maslow’s Hierarchy of Needs


                                              Source -  Dr, S. McLeod, (2020)

As shown in Figure 1 an organization successfully meets each of these engagement factors, it states that the organization becomes more attractive to new potential employees and becomes more engaging to its existing staff. Engagement is fulfillment from job and it’s also remarkably similar to both Maslow’s hierarchy of needs theory, with “hygiene” factors at the base of the triangle and “satisfier” towards the top as shown.

Chahal, (2013) suggested to increase the output of the employee's bank should timely appraise their employees and encourage them to work hard because satisfied employees are reason for the success of the financial sector. When employees are happy with their day to day work, they become loyal and giving full strength to the organization. Effective work life balance makes a person happier and more content (Veenhoven, 1991). (Nadeem and Abbas, 2009) found in their research that work load/stress is negatively correlated with job satisfaction in both private companies and public companies. Further ( Rose, 2003) also found an insignificant relationship among the job satisfaction and workload.

References

Albrecht, (2018). Organizational resources, organizational engagement climate, and employee engagement.

Anand, G. (2017). Corporate excellence through governance and employee engagement.

Bailey, C., Madden, A., Alfes, K., & Fletcher, L. (2017). The meaning, antecedents, and outcomes of employee engagement.

Beccalli, E. (2007). IT investment improve bank performance.

Budhwar, P. S., & Debrah, Y. A. (Eds.). (2013). Human resource management in developing countries.

Chahal (2013). Job satisfaction among bank employees: An analysis of the contributing variables towards job satisfaction.

Chen, L. (2012). A mixed methods study investigating intangibles in the banking sector.

Dr, S. McLeod (2020) Maslow’s Hierarchy of Needs.

Nadeem, M. S., & Abbas, D. Q. (2009, May). The Impact of Work Life Conflict on Job Satisfactions of Employees.

Nellis, J. G., McCaffery, K. M., & Hutchinson, R. W. (2000). Strategic challenges for the European banking industry in the new millennium.

Veenhoven, R. (1991, March 28). Is Happiness Relative? 


Comments

  1. Dineth PereraDecember 7, 2021 at 5:26 AM

    This comment has been removed by the author.

    ReplyDelete
  2. Dineth PereraDecember 7, 2021 at 5:35 AM

    hi upeksha, agree with you, adding to your points, idea of implies the dual role of the theory first to organizations and second to employees on the basis both the organization and the employees must decide on the performance of their organization. when employees put in their best in the service of the organization and the culture and human resource practice should also ensure that the employees level of needs are reflected in the values the organization (Greenberg & Baron, 2003).

    ReplyDelete
    Replies
    1. Upeksha PathiranaDecember 23, 2021 at 4:03 PM

      Thank you for the comment Dineth. A highly engaged workforce has been shown to improve productivity, increase profitability and reduce turnover (Kate Heinz, 2021).

      Delete
  3. Ravi Dissanayake, PhDDecember 24, 2021 at 8:44 AM

    Employee engagement is measurable at the employee and organisational level, and can be measured by employee engagement surveys, one-on-one interviews, focus group interviews and exit interviews. Merely changing the management practice sometimes can increase job satisfaction (Harter et al. 2002). For example, an engaging leadership style has a beneficial effect on individual and team performance.

    Harter, JK, Schmidt, FL & Hayes, TL 2002, 'Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis', Journal of Applied Psychology, vol. 87, no. 2, pp. 268-79.

    ReplyDelete
    Replies
    1. Upeksha PathiranaDecember 24, 2021 at 4:00 PM

      Thank you for the comment Ravi. Importantly, employee engagement is an outcome that depends on the actions of an organization. For many employees, whether or not they feel engaged is reflected by whether or not leadership , managers, and people teams listen to and value their voices (Lexi Crosswel, 2020).

      Delete
  4. Manoj JayasiriDecember 24, 2021 at 10:32 PM

    Agreed with your points Upeksha , According to the Catteeuw (2007) when employees are engaged, they satisfied with their jobs constantly and will stay with the organization for long period and look for effective innovations to add values to the organization therefore ultimate result is an excellent level of performing organization where its employees are successful, and productivity is increased and sustained

    ReplyDelete
    Replies
    1. Upeksha PathiranaDecember 25, 2021 at 11:12 PM

      Thank you for the comment Manoj. Establishing measurable metrics is important, but not enough to ensure that employees fully understand what is expected of them ( Ian Cook, 2021).

      Delete
  5. Ijaz FaizDecember 25, 2021 at 3:37 AM

    Hi Upeksha,
    Adding to that In this analysis, we tend to use 3 dimensions: Job Stability,
    Job Enrichment, and Job ability (Mahmood et al., 2019).
    Job satisfaction received the attention of many researchers
    because it is important for the individual’s performance
    within the organization (Mohammad et al., 2017).

    ReplyDelete
    Replies
    1. Upeksha PathiranaDecember 26, 2021 at 12:13 AM

      Thank you for the comment ljaz. The purpose of job enrichment is to make the position more satisfying to the employee. Overall goals of the company often include increasing employee job satisfaction, reducing turnover, and improving productivity of employees (Jerry Wilson,2021).

      Delete

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